Safe Harbor
/ˈseɪf ˈhɑːrbər/
Definitions
- (n.) A legal provision that protects a party from liability or penalty under specific conditions or if certain standards are met.
The company claimed safe harbor protection from securities liability by complying with disclosure rules.
- (n.) A statutory or regulatory exception that shields an action from legal challenge or enforcement.
The tax code includes a safe harbor allowing small businesses to deduct certain expenses without an audit risk.
Forms
- safe harbor
Related terms
See also
Commentary
Safe harbor provisions often serve to reduce uncertainty by clarifying conditions under which legal risks are mitigated, thereby encouraging compliance and reducing litigation exposure.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.